Problema Solution

Cost equations for manufacturing companies are often quadratic in nature. If the cost equation for manufacturing inexpensive calculators is C= x² - 10x + 30 where C is the cost of manufacturing x units per week. (Both in thousands) The company sells its calculators to wholesalers for $3 each. Thus, its revenue is R= 3x where R is revenue and x is the number of units sold per week (both is thousands.) Find the break even point(s) for the company- that is, the output at which revenue equals cost.

Answer provided by our tutors

C = R


x^2 - 10x + 30 = 3x


by solving we find


x1 = 10 thousand units per week


x2 = 3 thousand units per week


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the break even point(s) for the company are x1 = 10,000 units per week and x2 = 3,000 units per week.